Custom «Grill Cook Resume Restraunt» Essay Paper
The business is owned and operated by by Blue Fish Grill, LLC, which is a company limited by liability. The founders of the restraunt are Harry Stevens and Linda Jones. The company is located at 398 Water St. In Mobile Alabama. The company has corporate offices at 2403 Burnett St. Mobile, Alabama. The company is engaged in provision of sea food featuring family style services of Gulf coast specialties. It has the following varieties of fried and gried foods; fish, chicken tenders, shrimp and oysters. The company main transactions revolve around purchases and sales activities each and every month.
The following are the various transactions that took place in the month of march 2010 and were recorded in the books of accounts of the company.
(i)March 1, purchased cooking gas on credit from Jones investment
company worth $ 20,000.
(ii)March 2, fish amounting to $ 15000 were sold on credit to Madan.
(iii)March 10, chicken tender worth $4000 were sold on credit to mary.
(iv)March 20, madan made a cash payment for the goods he took on credit.
(v)March 25, the company purchased food supplies worth $ 20,000 on
credit from Peter supplies agency.
(vi)March 26, The disposed on of it vansat $ 500000 on cash to Peter James.
(vii)March 30, fish worth $ 20500 was sold at cash to Madan and the
company purchased a new van on credit from General motors at $100,000.
The company prepares its books of accounts using the following
1.Economic Entity Assumption
The accountant keeps separate records of transactions from the owner’s personal transactions.
2.Monetary Unit Assumption.
The transaction activities of the business are recognized in dollars and only those activities that can be recognized in dollars are recorded in books of accounts.
3.Time Period Assumption.
This is where the accountant can report the complex and ongoing activities of the business within short period intervals.
The cost of item is recognized at their purchasing price, even if the purchase did happen 20 years ago.
5.Full Disclosure Principle.
The accountant have to disclose any important information in the financial statements to the owners of the company for better decision making purposes.
6.Going Concern Principle.
The accountant makes assumptions that the company will continue to exist long enough to achieve its objectives in preparation final accounts of the company.
The company expenses are matched with revenues.
8.Revenue Recognition Principle
It recognizes its revenue immediately the item has been sold regardless of when the payment is going to be made.
The accountant is allowed to violate other accounting principles if the amount in question is insignificant.
The following are journal entries for the transaction that took place
in the month of March 2010.
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